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Collins Foods (CKF)

  • 13-01-2020 5:31pm
    #1
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,606 Mod ✭✭✭✭


    The company Collins Foods (CKF) owns 250 KFC restaurants around Australia

    Here’s a breakdown of how they make money.

    If you spend $1 in a KFC it gets divided up as follows:

    $0.473 paid to suppliers
    $0.206 selling, marketing and royalties
    $0.083 leases etc
    $0.063 admin/other

    This leaves:
    $0.078 Earnings Before Interest and Tax (EBIT)
    $0.012 Interest
    $0.022 Tax

    This leaves:
    $0.043 Net Profit After Tax (4.3% profit margin)

    This gets split:
    $0.025 Dividends
    $0.018 Retained Profits

    So a $1.000 spent at KFC delivers $0.025 in the pockets of shareholders.

    Anyone want to hazard a guess as to the buy price?


Comments

  • #2
    bizidea
    Registered Users, Registered Users 2 Posts: 403 ✭✭bizidea


    Are they worth a punt jim


  • #3
    bizidea
    Registered Users, Registered Users 2 Posts: 403 ✭✭bizidea


    I still haven't looked up the price of collins food thought there would be more interest in this thread


  • #4
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,606 Mod ✭✭✭✭Jim2007


    bizidea wrote: »
    Are they worth a punt jim

    Do your own research, I do not provide investment advice. It is a fairly straight forward company to value.


  • #5
    Nedzer01
    Registered Users, Registered Users 2 Posts: 27 ✭Nedzer01


    8.96 AUD at close according to DEGIRO. Not sure if then what the P/E then with EPS of 0.32 => 3.5 %, hardly stellar - but I presume you’re looking for dividend growth?


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